Using same printout, place right side down on light box then fabric right side down and trace outline of letters onto paper backing of fusible:

6. Carefully cut out letters, keep the paper backing in place:

7. Iron letters in place using the guide made earlier in Step 4:

8. Using Coats Dual Duty general purpose black thread doubled on the needle begin a tight satin stitch over the letters. Keep stitches as close to each other as possible mimicking a tight zigzag machine stitch:

Below the 'E' is complete:

All letters sewn:

And a view of the back:

I prefer to hide this mess between the fabric and lining but you could skip Step 2 and sew straight through to the interior.

9. Sew zipper and binding back in place following the existing stitching lines: